My wife had her name misspelled in English in her previously used passport. She traveled, but never to the US before and she has no criminal record. Before filling the I-130 form, she was issued a new passport with the correct spelling and added an additional last name so it matches the names she has in all her other papers so that when we apply she has all the papers under the correct exact name. The problem is that she didn’t mention the name in the old passport as “previously used names” in the I-130 form which makes us worry now if this will cause us problems.
It sounds like you have a spelling issue as a result of transliteration. Your wife can list the “other names used” on the I-130 and I-485 and any other document that elicits the information. It should not be a major problem because her foreign alphabet name is likely the same in both passports.